Literature DB >> 10106948

The call to collaboration. Pursuing and completing a merger requires planning and perseverance.

M Frieders1, M K Grant.   

Abstract

In 1987 Mercy Health Care System (MCHS) of Scranton, PA, and Mercy Health System (MHS) of Cincinnati took the first steps toward a merger. Leaders of the Scranton province, who had for some time been seeking to establish a relationship with another Mercy-sponsored health system, had approached MHS with the proposal. In late summer 1988 MHS began a thorough analysis of the facilities of the Pennsylvania system, assessing their mission, margin, and market strength; plant and property conditions; and human resources. At the same time the two provincial teams and CEOs from facilities in both systems, along with an outside consultant, began to negotiate the proposed merger's sponsorship and governance structure. Careful avoidance of "we-they" thinking was the hallmark of the entire negotiating process. Having agreed that they wanted a cosponsored system, the negotiating teams struggled to determine the degree of representation the Scranton province (five facilities) and the Cincinnati province (18 facilities) would have. The teams also had to iron out differences of opinion regarding the viability of one facility. Negotiators also worked out a decision-making procedure ensuring appropriate input from the Scranton member of the corporation. Help was sought to ensure that the merger agreement was in accordance with both canon and civil law. A sophisticated, step-by-step implementation process helped bring MHCS facilities on line as quickly as possible with minimal disruption. A series of celebrations commemorated the merger's completion.

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Year:  1990        PMID: 10106948

Source DB:  PubMed          Journal:  Health Prog        ISSN: 0882-1577


  1 in total

1.  Physicians in health care management: 9. Strategic alliances and relationships between organizations.

Authors:  P Leatt; J Barnsley
Journal:  CMAJ       Date:  1994-09-15       Impact factor: 8.262

  1 in total

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